2 ms·
If you take a loan out to purchase a real asset (say real-estate, or something that holds value over time) for some amount, if the inflation goes up by 50% and
by warble 4y ago
If you take a loan out to purchase a real asset (say real-estate, or something that holds value over time) for some amount, if the inflation goes up by 50% and you have the ability to make more money as you're earning money from outside the country, your load liability effectively goes down by 50%. So you're paying 50% less for that loan over time.
This makes capital investments cheaper. This is just one example.
- xtracto 4y agoJust make sure the loan is in fixed interest rate.